ASIA’STHE RISE OF January 2016
INDOOR AGRICULTURE INDUSTRY
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
ABOUT THE AUTHORS
NewbeanCapitalisaregisteredinvestmentadviserthatmanagesearlystageventurecapitalmandatesforinstitutionalinvestors.Itsfounder–NicolaKerslake–hasalongstandinginterestinagricultureinvestment,havingpreviouslycoveredagriculturestocksasanequityanalystandmanagedinstitutionalinvestmentportfoliosthatcoveredthesector.ShefoundedtheIndoorAg-Coneventthreeyears’agotoprovideameetingplaceforthosewhoareaspassionateassheisaboutthepromiseoftheindooragricultureindustry.
SGFarmingisanonlinelifestyleandtechjournalabouttheagriculturesceneinSingapore.Weexploreandtrackthelatestdevelopments,trendsandchallengesofthelocalfoodsystem.Weaimtopromotelocalfoodandfoodsustainability,aswellastoeducatepeopleregardingtheoriginsoffoodandtheprocessesinwhichtheyareproduced.
Specialcredittoourinternanalyst,SongShuang,forherresearchcontributionstothiswhitepaper.
ACKNOWLEDGEMENTS
Theauthorswouldliketothankthefollowingfortheirinputintothispaper:YurijDudaofArgusControls,Dr.KozaiofChibaUniversity,Dr.WeiFangofNationalTaiwanUniversity,BillWhittakerofPriva,JJPriceofSpread,EriHayashi.
DISCLAIMER
ThispublicationhasbeenproducedbyNewbeanCapital,aregisteredinvestmentadviser.Readershipofthispublicationdoesnotcreateaninvestmentclient,orotherbusinessorlegalrelationship.Itprovidesinformationabouttheindooragriculturemarkettohelpyoutobetterunderstandthisindustry.Thispublicationdoesnotpurporttoprovideinvestmentadvice,normayitberelieduponasasubstitutefor,speci�icinvestment,legalorotherprofessionaladvice.
NewbeanCapitalhasactedingoodfaithtoprovideanaccuratepublication.However,NewbeanCapitaldoesnotmakeanywarrantiesorrepresentationsofanykindaboutthecontentsofthispublication,theaccuracyortimelinessofitscontents,ortheinformationorexplanationsgiven.NewbeanCapitalhasnoobligationtoupdatethisreportoranyinformationcontainedwithinit.
NewbeanCapitaldoesnothaveanydutytoyou,whetherincontract,tort,understatuteorotherwisewithrespecttoorinconnectionwiththispublicationortheinformationcontainedwithinit.Tothefullestextentpermittedbylaw,NewbeanCapitaldisclaimsanyresponsibilityorliabilityforanylossordamagesufferedorcostincurredbyyouorbyanyotherpersonarisingoutoforinconnectionwithyouoranyotherperson’srelianceonthispublicationorontheinformationcontainedwithinitandforanyomissionsorinaccuracies.
1WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
EXECUTIVE SUMMARYAsiaconsumes75%ofallvegetablesglobally¹,andinextraordinaryvariety,fromtheChinesecabbageandradishthatformthebasisofKoreanstaplekimchitomedicinalJapanesespecialtyleafygreeniceplant.Itsconsumersarechangingtheirfoodpreferencesandsupplychainsareadjustingtomeettheirneeds.Asaconsequence,itsagriculturallandscapeisshifting,enablingtheriseoftechnology-basedfarmingapproaches,suchas,indooragriculture.
Indooragricultureisgrowingvegetablesincontrolledenvironments,suchaswarehouses,containersandpurpose-builtgrowingchambers,usinghydroponicsystems.Itisnotanewpractice,itsrootsgobacktoRomantimes,butithasundergonearevivalinthepast�iveyearsasenablingtechnologiesbecomemoreavailable,moresophisticatedandcheaper.
Asiahaslongstandinggreenhouseand�ieldagricultureindustries,soitisperhapsunsurprisingthatitalsohasthemostdevelopedindooragricultureindustryofanyglobally.Japanalonehadmoreplantfactoriesby2010thantheUnitedStateshastoday.Theworld’s�irstplantfactorywasestablishedinJapanin1983²,andtherearenowapproximately450acrosstheregion.
Themajority–justover40%-ofAsia’splantfactoriesareinJapan;China,SouthKoreaandTaiwanalsohavesubstantialplantfactoryindustries.Despite70%+pagrowthinthenumberofTaiwaneseandJapaneseplantfactoriessince2009,thereisstillplentyofscopeforindustrydevelopmentasitissmallincomparisontotheoverallvegetablemarket.EveninJapan,theindustryprovideslessthan0.6%oftotalvegetableproduction³,andonly18%ofconsumersareawareofplantfactoriesandhavepurchasedvegetablesfromthem⁴.
ThechangingexpectationsofAsia’sconsumersaretheprimarydriverofAsia’sindooragricultureindustry.Risingpollution,mediacoverageoffoodscandalsandanincreasingdistasteforexcessivepesticideusehaveledAsia’sconsumerstodemand“cleanfood”,typicallyde�inedasbeingpesticidefreeandfromreputablesources.Thesetrendsfavourindoorgrowerswhosevegetablesaretypicallygrownwithoutpesticidesandinsemi-cleanroomconditions.
Insomecountries,theindustryhasalsobene�itedfromsupportivegovernmentpoliciesandsubsidies.InJapan,morethanhalfofplantfactoriesreceivedeitheraloan(20%)orasubsidyandaloan(35%)toestablishoperations⁵.Supportingindooragricultureisawayofincorporatinglow-environmentalimpactfarmingintoAsia’srapidlyexpandingcities.
WeanticipatethatwewillseebettereconomicsandmoreinternationalexpansionfromAsia’splantfactoriesoverthenextfewyears,drivenbyrapidtechnologydevelopmentespeciallyinlightinganddatausage.Indooragricultureisatanexcitingpointinitsdevelopment,withtechnologyadvanceschangingtheeconomicsoftheindustry,andenablingnewbusinessmodels,atarapidclip.
2 WWW.INDOOR.AG
1Euromonitor�igure,basedonvolumefor20142“PlantFactory;AnIndoorVerticalFarmingSystemforEf�icientQualityFoodProduction”,Kozai,Niu&Takagaki,October20153Calculatedbasedon¥13bninplantfactoryrevenuefor2015perYanoResearchInstituteLtd,andtotalvegetablemarketsizeof¥2tnfor2011perMinistryofAgriculture,ForestryandFisheries4MitsubishiUFJResearch&Consulting2013ConsumerSurvey5MinistryofAgriculture,ForestryandFisheries(MAFF)�igures,March2014
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
3WWW.INDOOR.AG
TABLE OF CONTENTS
Executive Summary 2
A Introduction 5
Chart One: Asia’s Indoor Agriculture Industry by Structure 6
B State of the Industry 7
Chart Two: Geographic Spread of Asia’s Plant Factories 7
Chart Three: Number of Japanese & Taiwanese Plant Factories 7
Chart Four: Japan’s Plant Factories 8
Chart Five: China’s Plant Factories 8
Chart Six: Taiwan’s Plant Factories 9
Chart Seven: South Korea’s Plant Factories 9
Chart Eight: Plant Factories in Other Parts of Asia 10
C What’s Driving Asia’s Indoor Agriculture Growth 12
Chart Nine: Food, Beverages & Tobacco: Market Demand Growth (% Change pa) 13
Table Ten: Asian Government Support for the Indoor Agriculture Industry 16
D Plant Factory Technologies 17
Chart Eleven: Plant Factory Components 17
1 Form Factors and Growing Systems 17
2 Environmental Control Unit 18
3 Nutrient Supply & Control 18
4 Air Conditioning 18
5 CO2 Supply Unit 19
6 Lighting 19
Chart Twelve: LED Lighting Price Falls 20
E What Comes Next 21
Case Study: Exporting Plant Factory Technology 22
F The Future of Asia’s Indoor Agriculture Industry 23
Appendix: Japan’s Artificial Light Plant Factories 25
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
4 WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
5WWW.INDOOR.AG
A INTRODUCTION
Asiaconsumes75%ofallvegetablesglobally⁶,andinextraordinaryvariety,fromtheChinesecabbageandradishthatformthebasisofKoreanstaplekimchitomedicinalJapanesespecialtyleafygreeniceplant.Itsconsumersarechangingtheirfoodpreferencesandsupplychainsareadjustingtomeettheirneeds.Asaconsequence,itsagriculturallandscapeisshifting,enablingtheriseoftechnology-basedfarmingapproaches,suchas,indooragriculture.
Indooragricultureisnotanewpractice,itsrootsgobacktoRomantimes,butithasundergonearevivalinthepast�iveyearsasenablingtechnologiesbecomemoreavailable,moresophisticatedandcheaper.Wereferyoutoourearlierwhitepaper–“IndoorCropProduction;FeedingtheFuture”ofMarch2015⁷–forabriefhistoryoftheindustry.
ThispaperisintendedasanintroductiontotheindooragriculturesectorinAsia;itprovidesanoverviewofthecurrentstatus,technologiesandfutureprospectsforindooragriculture.Itsauthorsareactiveintheindustry,butdonotconsiderthemselvesexpertsbyanymeans.Weareboundnotbycontractualarrangements,butbyamutualinterestinseeingathrivingindooragricultureindustryasacomponentofastronger,healthierglobalfoodsupplychain.Bytheverynatureoftheexercise,oursurveywillomitmanynoteworthyprojectsandplayers.
Forthepurposesofthispaper,wede�ineindooragricultureasgrowingvegetablesincontrolledenvironments,suchaswarehouses,containersandpurpose-builtgrowingchambers,usinghydroponicsystems.Thisde�initioncoversabroadrangeofindoorfarms,frombasictabletopsystemsinone’sapartmentthroughlargescaleautomatedcommercialoperations,asisshownintableoneoverpage.
WithinAsia,themoresophisticatedoftheseindoorfarmsusesubstantialroboticsandautomationtocontroloperations,andaregenerallyreferredtoasplantfactories,butaresometimescalledplantfactorieswitharti�iciallight(PFAL),verticalfarms,andcontrolledenvironmentagriculture(CEA).Ourreportfocusesoncommercialplantfactories,whosemajorcharacteristicsare:
Ÿ ControlledEnvironment.Growroomsaretypicallycontrolledenvironments,suchasa�loorofanof�iceblock,withsomebeingoperatedinsemiorcompletelycleanroomconditions.Thisshieldstheplantsfromtheoutsideworld,soallowingbettercontroloverplantgrowthandexcludingmostpests.
Ÿ Arti�icialLight.Plantfactoriesmostlyrelyonarti�iciallightforplantgrowth,andthistypicallytakestheformofeithersodiumor–increasingly–LEDlights.
Ÿ ResourceUsage.Plantfactoriesuseafractionofthewaterrequiredintheopen�ield,insomecasesaslittleas1%ofthatusedoutdoors.Manyeschewpesticides,andsomearecerti�iedasorganic.
Ÿ UseofAutomation&Robotics.Withsophisticateddataandassociatedanalyticsbecomingincreasinglyavailable,plantfactoriesrelyonanexpandingrangeoftechnologiestominimizeresource(energy,water)usageandoptimizecropyields.
6Euromonitor�igure,basedonvolumefor20147Thispapercanbedownloadedathttps://indoor.ag/whitepaper
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
6 WWW.INDOOR.AG
CHART ONE: ASIA’S INDOOR AGRICULTURE INDUSTRY BY STRUCTURE
Source:Miscellaneouspublicsources,greenhousedatafromCuestaRobleConsulting,NewbeanCapitalanalysis
HYDROPONICGREENHOUSES
Likesoil-basedgreenhouses,thesegreenhousesgrowcropsinasinglelayer.Transparentroofsareemployedtoutilizenaturalsunlight,augmentedwithsupplementallightingduringdarkdaysandoff-peakgrowingseasons.
Ourestimateisatleast500,coveringatleast54kha/134kacresbasedonCuestaRobleConsultingdata
IwakiOnahamaVeg.Farm,KagomeCo.Ltd,LeGaga
PLANTFACTORIES
Industrial,commercialorretailspaceisconstructedorretro�ittedwithhydroponic,aquaponicoraeroponicequipmentandcropsaregrownverticallytoachieveeconomiesofscale.Arti�iciallightingsystemsareusedatalltimes.
450plantfactories,withanestimated518bytheendof2016
JingpengPlantFactory,KiMiDoRiCorporation,Mirai,RefreshHamyang,SCATIL,Spread,Vegetechs
CONTAINERFARMS
Standardized,self-containedgrowingunitsthatemployverticalfarmingandarti�iciallighting.Incontrasttocustom-designedwarehouses,containerfarmsstriveforstandardization.
3commercial,likely4-5othersinprocessofcommercializing
AlescaLifeTechnologies,Daiwa’sagri-cube,FreightFarms
IN HOMESYSTEMS
Systemstargetedatconsumersforsmallscaleinhomegrowth,whetherasfridgesinkitchensorasstandaloneunitselsewhereinthehome.
Atleast7-8offeringsomeformofin-homesolution
HulyingEcological,iGrowths,Paci�icConstructionCo
DESCRIPTION
COMPANYEXAMPLES
ESTIMATEDNO. OF COSIN ASIANMARKET
WhenwerefertoAsia,weincludethefollowingcountries:China,HongKong,Japan,Mongolia,Singapore,SouthKorea,Taiwan,Vietnam.Wehaveselectedthesecountriesastheyhavecommercialplantfactories,andwediscussChina,JapanandTaiwanmostastheyhavethelargestindooragricultureindustries.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
7WWW.INDOOR.AG
GeographicSpreadThemajority–justover40%-ofAsia’splantfactoriesareinJapan;wehaveincludedalistofthearti�iciallightandcombinedarti�icialandsunlightplantfactoriesinanappendixforreference.ChinaandTaiwanalsohavesubstantialplantfactoryindustries.
IndustryGrowthDespite70%+pagrowthinthenumberofTaiwaneseandJapaneseplantfactoriessince2009,thereisstillplentyofscopeforindustrydevelopmentastheindustryissmallincomparisontotheoverallvegetablemarket.EveninJapan,theindustryprovideslessthan0.6%oftotalvegetableproduction⁹,andonly18%ofconsumersareawareofplantfactoriesandhavepurchasedvegetablesfromthem¹⁰.
CropDiversityAsisthecaseforplantfactoriesglobally,lettuceisthelargestcroprepresentingjustunderhalfofthecropsproducedbynumber¹¹.Otherleafygreensandherbsarealsopopular,at14%and17%ofcropsproducedbynumberrespectively¹¹.Otherwise,Asiahasagreaterrangeofcropsthanisseenelsewhereintheworld,forexample,ithascommercialproductionofspecialtycropssuchasberries.
B STATE OF THE INDUSTRY
Asiahaslongstandingandwellestablishedgreenhouseand�ieldagricultureindustries,soitisperhapsunsurprisingthatitalsohasthemostdevelopedindooragricultureindustryofanyglobally.Japanalonehadmoreplantfactoriesby2010thantheUnitedStateshastoday.Theworld’s�irstplantfactorywasestablishedinJapanin1983⁸,andtherearenowapproximately450inoperationacrosstheregion,asisshowninthemapsoverpage.Theindustry’smajorcharacteristicsare:
8“PlantFactory;AnIndoorVerticalFarmingSystemforEf�icientQualityFoodProduction”,Kozai,Niu&Takagaki,October20159Calculatedbasedon¥13bninplantfactoryrevenuefor2015perYanoResearchInstituteLtd,andtotalvegetablemarketsizeof¥2tnfor2011perMinistryofAgriculture,ForestryandFisheries10MitsubishiUFJResearch&Consulting2013ConsumerSurvey11Calculatedbytakingcropsproducedbyeachoftheplantfactorieswitharti�iciallightandplantfactorieswithcombinedarti�iciallightandsunlightinJapan,withdatafromJapanGreenhouseHorticultureAssociation
South Korea, 7%
Singapore, 5%Hong Kong, 5%Vietnam, 0.1%Mongolia
Taiwan, 25%
Japan, 41%
China, 25%
Sources:JapanPlantFactoryAssociation,Dr.WeiFang,Dr.ChanghooChun,Dr.QingYang,SingaporeFarming/NewbeanCapitalanalysis
CHART TWO: GEOGRAPHIC SPREAD OF ASIA’SPLANT FACTORIES
CHART THREE: NUMBER OF JAPANESE ANDTAIWANESE PLANT FACTORIES
Source:JapanPlantFactoryAssociation+PIDA,2015/12
250
200
150
100
50
0
614
4660
7490
112
140
3449
64
106
125
165
185
210
2009 2010 2011 2012 2013 2014 2015(E) 2016(F)
JapanTaiwan
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
8 WWW.INDOOR.AG
CHART FOUR: JAPAN’S PLANT FACTORIES
CHART FIVE: CHINA’S PLANT FACTORIES
Source:JapanGreenhouseHorticultureAssociation,2013
Chubu 1
22% of plant factories in Japan
Kanto*2
16% of plant factories in Japan* Tokyo included
Tohoku3
11% of plant factories in Japan
Kansai4
11% of plant factories in Japan22%
11%
11%
Chugoku5
10% of plant factories in Japan
10%
Kyusu6
10% of plant factories in Japan
10%
Hokkaido7
9% of plant factories in Japan
9%
Shikoku8
7% of plant factories in Japan
7%
Okinawa9
4% of plant factories in Japan
4%
16%
Source:Prof.&Dr.QichangYang,showsonlyplantfactorieswitharti�iciallight
Beijing 1
32% of plant factories in China
Hong Kong2
26% of plant factories in China
Guangdong3
21% of plant factories in China
Rest of China4
21% of plant factories in China
32%
26%
21%
21%
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
9WWW.INDOOR.AG
CHART SIX: TAIWAN’S PLANT FACTORIES
CHART SEVEN: SOUTH KOREA’S PLANT FACTORIES
Source:PIDA,2015
Taipei & New Taipei 1
38% of plant factories in Taiwan
Taichung, Changhua, Nantou& Yunlin2
18% of plant factories in Taiwan
Taoyuan3
15% of plant factories in Taiwan
Chiayi, Tainan, Kaohsiung &Pingtung4
15% of plant factories in Taiwan
38%
18%
15%
15%
Hsinchu5
9% of plant factories in Taiwan
9%
Rest of Taiwan6
5% of plant factories in Taiwan
5%
Source:Dr.ChanghooChun
G yeonggi1
50% of plant factories in South Korea
Seoul2
15% of plant factories in South Korea
South Gyeongsang3
15% of plant factories in South Korea
North Gyeongsang4
10% of plant factories in South Korea
50%
15%
15%
10%
Gwangju5
5% of plant factories in South Korea
5%
South Jeolla6
5% of plant factories in South Korea
5%
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
10 WWW.INDOOR.AG
CHART EIGHT: PLANT FACTORIES IN OTHER PARTS OF ASIA
Source:NewsReports,NewbeanCapital/SingaporeFarmingAnalysis
Singapore1
There are 5 PFALs in Singapore
Mongolia2
There are 2 PFALs in Mongolia
Vietnam3
There is 1 PFAL in Vietnam
5
2
1
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
11WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
C WHAT’S DRIVING ASIA’S INDOOR AGRICULTURE GROWTH
ThechangingexpectationsandbehaviourpatternsofAsia’sconsumerswithregardtofoodconsumptionaretheprimarydriverofAsia’sindooragricultureindustry.Insomecountries,theindustryhasalsobene�itedfromsupportivegovernmentpoliciesandsubsidies.
ChangingConsumerNeeds
Risingpollution,mediacoverageoffoodscandalsandanincreasingdistasteforexcessivepesticideusehaveledAsia’sconsumerstodemand“cleanfood”,typicallyde�inedasbeingpesticidefreeandfromreputablesources.Recurrentfoodscandals–frommelamineinbabyfoodtotaintedmeatservedatfastfoodrestaurantKFC–haveledChineseconsumersinparticulartoseekinformationonthesourceandsafetyoftheirfood.Forexample,popularventurecapital-backedfooddeliveryappEle.meremoved30%¹²ofrestaurantsfromitsappinHangzhoualonefollowingmediacoverageofpoorhygienestandardsinsomekitchens.
Environmentalfactorsalsoplayapart,whetherintheformofconcernsoverradiationexposureinJapanfollowingtheTohokuearthquake,tsunamiandnucleardisasterorsmoginChina’smajorurbancentres,suchasBeijing,wheretheairpollutionindexwas20¹³timeswhattheWorldHealthOrganizationconsiderstobesafeattheendofNovember2015.ShigeharuShimamura,theerstwhileCEOofoneofJapan’sbetterknownplantfactorycompanies–Mirai–wasinspiredtostartthe�irmbyawishtohelpthecountryrecoverfrom2011’snaturaldisasters.
Thesametrendisdrivingrenewedenthusiasmforhobbygrowing,whetherintheformofsmallgardenplotsorthein-househydroponicandaquaponicssystems.Naturally,aparticularconcernisyounginfants’diets,withoneChineseseedsellerreportingthatfullyhalfofitscustomersaremothersgrowingvegetablesfortheiryoungchildren¹⁴.
Atthesametime,Asia’sconsumersarechangingtheirdiets,seekingmoredairy,meatandprocessedfoods,thelatteroftenbeingvegetable-based.Indoorfarmsareplayingapartinsatisfyingthisdemand,forexample,oneTaiwanesecompanyhasdevelopedvalueaddedproducts,suchas,eggrolls,breadandicecreambasedonitsplantfactory.
Combined,thesetrendsfavourindoorgrowerswhosevegetablesaretypicallygrownwithoutpesticidesandinatleastsemi-cleanroomconditions.Moreover,indoorgrowersaremoreeasilyabletoidentifythesourceoftheirvegetables,ratherthantherebeingfromavarietyofunnamedsourcesandalongsupplychain,portionsofwhichareunrefrigerated.
SupplyChainRestructuring
BasedondatafromtheEconomistIntelligenceUnit,Asiaisthefastestgrowingregionforfood&beverageproducts.Justastraditionalwetmarketscededgroundtosupermarketsoverthepastfewdecades,nowsupermarketsarebeingchallengedbyonlinegroceryandfooddeliveryservices.Marketresearch�irmNielsenfoundthatmorethanathird(37%)ofAsia-Paci�icrespondents,andnearlyhalfofChineserespondents(46%),saytheyuseanonlinegroceryorderinganddeliveryservice,wellaheadofglobalaverages¹⁵.
12 WWW.INDOOR.AG
12“FoodScandals”,ShanghaiDaily,December31,201513“Beijingchokesonoff-the-chartsairpollutionasthicksmogsettlesovernorthernChina”,AngelaFritz,WashingtonPost,November30,201514“UrbanFarmingaGrowingTrendinChina”,SouthChinaMorningPost,August19,201215“TheFutureofGrocery:E-Commerce,DigitalTechnologyandChangingShopperPreferencesAroundtheWorld”,Nielsen,April29,2015
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
13WWW.INDOOR.AG
CHART NINE: FOOD, BEVERAGES & TOBACCO: MARKET DEMAND GROWTH(% CHANGE PA)
-1
0
1
2
3
4
5
6
7
2011 2012 2013 2014 2015 2016 2017 2018
China Hong Kong Japan Singapore South Korea Taiwan Vietnam
Thesechangesbene�itindooragriculture,whichisabletosupplementtraditionalagriculturebyofferingaconsistentyear-roundsupplyoffreshlocallygrownvegetables,akeyfactorforincreasinglypopularorganicvegetablesandinoffseasonswhenvegetablesarehardtosource.Forinstance,Taiwan’sfarmersgrowaround130¹⁶typesofvegetables,butthecountrystillimports70%¹⁷ofitsorganicfoodandbeverages.
SupportiveGovernmentPolicies
Arguably,Asia’sgovernmentshavebeenthemostsupportiveofanygloballytowardstheindooragricultureindustry.Asisshownintableten,thissupportrangesfromsubsidiestonationalpolicyinitiatives.InJapan,morethanhalfofplantfactoriesreceivedeitheraloan(20%)orasubsidyandaloan(35%)toestablishoperations¹⁸.
Governmentsupportissupplementedbytheformationoftradeassociationsthatcombinethetalentsofprivate�irmsandacademicinstitutions.OneexampleistheTaiwanPlantFactoryIndustryDevelopmentAssociation,formedbytwentybusinessesandacademicresearchinstitutions,includingtheIndustrialTechnicalResearchInstitute,thenonpro�itresearchinstitutethatfamouslyplayedaroleinkickstartingTaiwan’sworld-leadingsemiconductorindustry.Theregionisalsohometoleadingresearchuniversitiesinthespace,suchasChibaUniversity.
16“PostharvestLossesofFruitandVegetablesinAsia”,FoodandFertilizerTechnologyCentrefortheAsianandPaci�icRegion17“Agri-FoodPast,PresentandFutureReport–Taiwan”,GovernmentofCanada,June201118MinistryofAgriculture,ForestryandFisheries(MAFF)�igures,March2014
Source:EconomistIntelligenceUnit,�iguresareforecastsfrom2014onwards
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
14 WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
15WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
Inourview,thedrivingforcesforthissupportareeconomicdevelopmentandfoodsecurity.
Foodsecurityisespeciallyimportantincountriesthatareexperiencingdecliningfoodself-suf�iciencyrates.Japan,forexample,hasseenitsfoodself-suf�iciencyratio–theproportionofconsumptionthatisgrowninthecountry–fallfromaround80%in1960toaround40%today¹⁹.Theissueisbecomingmorepressingastheaverageageoffarmersrises,farmlandisabandonedwhetherowingtopollution,soilerosionorforconversiontootheruses,andwaterbecomesscarcer.Supportingindooragricultureisawayofincorporatinglow-environmentalimpactfarmingintoAsia’srapidlyexpandingcities.
Asecondarydriveriseconomicdevelopment,especiallywheretheredeploymentofexistingtechnologiesintotheindooragricultureindustrycanleadtohigherequipmentandtechnologyexports.Forinstance,JapanesemajorFujitsu’sAizuwakamatsuAkisaiPlantFactoryusesarepurposedsemiconductorfactoryinfrastructurecombinedwiththecompany’sexpertiseinenergyconservation,environmentaltechnologyandsemiconductormanufacturing²⁰.TechnologyexporthasbeentheengineofseveralwavesofeconomicgrowthinAsia,withearlierexamplesbeingpetrochemicalsandsemiconductors,soit’slogicalthattechnology-basedagricultureshouldnowbeafocus.
16 WWW.INDOOR.AG
19“FoodSelf-Suf�iciencyandInternationalTrade:AFalseDichotomy?”,FoodandAgricultureOrganizationoftheUnitedNations,March201520“IntroductiontoFujitsu'sFoodandAgricultureCloudAkisai”,FujitsuLtd,July24,2014
TABLE TEN: ASIAN GOVERNMENT SUPPORT FOR THE INDOOR AGRICULTUREINDUSTRY
COUNTRY
China
Japan
South Korea
COMMENTARY
In the 11th Five-Year Plan for National Economics and Social Development, the government stresses the importance of Green and Controlled Environment Agriculture. There are many research projects underway e.g. the National High Science & Technology Project on plant factory production technology, combines 15 universities, institutes and companies and is supported by the Ministry of Science and Technology of China.
MAFF & MITI began the 5 year "Plant factory with artificial light and/or solar light" project in 2009 with ¥15bn budget. Offers 50% subsidy for commercial plant factory construction. Also offers subsidies for basic research, demonstration, training and PR.
In 2009, the national policy of "Low carbon, green growth campaign" was adopted, and MKE began series of research and policy support projects, aimed at technology export. Government announced a "Plan for promotion of agri-food and ICT convergence" in 2013. Applies ICT tech to agricultural products.
Sources:Newsreports,discussionswithindustryparticipantsNewbeanCapital/SingaporeFarminganalysis
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
17WWW.INDOOR.AG
21PerDr.WeiFang
D PLANT FACTORY TECHNOLOGIES
Thefollowingisanoverviewofthecomponentsofplantfactories,thebasisofwhichistheclassi�icationdelineatedbyleadingplantfactoryresearcherDr.ToyokiKozai.Welookbrie�lyatthepurposeandstatusofeachcomponent,andattheopportunitiesfordevelopmentineach.
CHART ELEVEN: PLANT FACTORY COMPONENTS
1. FORM FACTORS AND GROWING SYSTEMS
Plantfactoriesarehousedincontrolledenvironments,andthesearegenerallyinsulatedandisolatedfromtheoutsideworldviaairlocksorbyoperatinginentirelyclean-roomconditions.Theyareinavarietyofsettings,frompurposebuiltwarehousestorepurposedsemiconductorfactories.Forinstance,over90%ofTaiwan’splantfactoriesarehousedinof�icebuildings²¹.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
18 WWW.INDOOR.AG
Growingsystemscompriseaseriesofupto20verticallayersofgrowrackswithtroughsthatcontainthenutrient-richwaterinwhichplantrootsgrow,andeachlayerofwhichincorporateslighting.Historically,growershavemostlychosentobuildtheirowngrowingsystems–usingeverythingfrombasicPVCpipestoprofessionallyengineeredrackingsystems–butaplethoraof�irmsnowofferturnkeysolutions.
Opportunities:Withnumeroussystemsnowcommercialized–fromplayersasvariedasmajorssuchasPanasonicandFujitsuthroughtoone-personstartups–naturalopportunitiesareinimprovingtheef�icienciesofthesystems,orincreatingadd-onsolutionsandintegratedproducts,suchaswhite-labeledorganicnutrientsolutions.Addingautomationandroboticstosystemsisalsoapromisingresearchavenue,asthisoffersthepotentialtoreducethelabourcoststhatgenerallymakeuparoundaquarterofplantfactoryoperatingcosts.
2. ENVIRONMENTAL CONTROL UNIT
Environmentalcontrolunitsmonitor,andsometimesadjust,arangeofindoorfarmfactors,forinstance,pH,nutrientandhumiditylevels.CompaniessuchasArgusControls,AutogrowandPrivaofferplentifulproducts,fromthesimplestpHmonitorstosophisticatedsystemsthattrackworkerproductivity.Severalhavecloudbasedoptionsthatallowuserstoremotelyaccessandcontroltheirfarms.Thankstotheadventofbigdata–vastdatasetsthatcanbeanalyzedtoidentifypatterns,trends,andassociations–controlsystemsareoneofthemostattractiveareasofindoorfarmsforfurtherdevelopmentasmarketcommentatorsanticipatebettercropyieldsfromtheapplicationofresultsfrombigdataanalytics.
Opportunities:Theexplosionofcheapsensorsandanalyticplatformsoverthepastfewyearshasopenedthepossibilityofcreatingabetterunderstandingofplantbehavior,onewhichislikelytobecapturedbybothexistingplayersandstartupsalike.Wediscussedthisopportunityinmoredetailinanearlierwhitepaper;“RoboticsandAutomationinIndoorAgriculture”ofOctober2015⁷.
3. NUTRIENT SUPPLY & CONTROL
Inhydroponicsystems,plants’nutrientneedsaresuppliedthroughthesolutioninwhichrootsrest,anddifferaccordingtoplanttypeandlifestage.Somegrowersusecommerciallyavailablenutrientmixes,whileotherschoosetocreatetheirowncustommixes,andviewtheseaspartoftheiruniqueapproachtogrowing.Mostalsousedosingcontrolsystemsthatmonitorandadministernutrientstothefarm’srecirculatingwatersystem.Suchsystemsareofferedbyacombinationoflongstandinggreenhousesuppliers,suchasDosatronInternational,andnewermarketentrants.
Opportunities:Manygrowerswouldliketobetterverifytheplantgrowthand�lavourclaimsmadebycommercialnutrientsuppliers,andtobetterunderstandtheimpactofmicrobiomesinsoil.Naturally,smallergrowersarealwaysonthelookoutforcheaper,simplersystemstouseintheirfarmsinaddition.
4. AIR CONDITIONING
Creatingoptimaltemperatureandhumidityconditionsisvitaltoplanthealth,sogrowersdevoteagooddealofattentiontoselectingairconditioningequipment.Alargerangeofoptionsarecommerciallyavailable,andthegrower’sselectionisgenerallydeterminedbyacombinationofinitialcapitalcost,unitcapacityandoperatingcosts,asairconditioningtypicallycomprises20-30%ofelectricitycosts.Therearesubstantialeconomiesofscaleinairconditioning,suchthatlargerfarmshavelowercapitalandoperatingcostspersquaremetreofplantedspace.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
19WWW.INDOOR.AG
22“ResearchReport:LEDLighting”,MartinJackson,WoodsideCapitalPartnersInternational,2012
Opportunities:Growersconsistentlyseekairconditioningsystemsthatintegratewellwithfarmcontrolsystems,andarecheaperandmoreef�icientthanthosecurrentlyavailable.Thisisespeciallythecaseforsmallerfarms,whichdonotcurrentlyhaveaccesstolarger,moreef�icientoptions.
5. CO2 SUPPLY UNIT
CarbondioxideorCO2suppliesessentialelementstoplants.It’scommontoenrichtheCO2availableinplantfactoriesaboveambientlevelsasstudiesasfarbackasthemid-1980shaveestablishedacorrelationwithbetteryields-especiallywhenusedatcertainplantlifestages-andwithmoreef�icientplantwateruse.CO2isgenerallypipeddirectlyintothefacilitytoreachtherequiredlevel,thoughventilationsystemsandlocalregulationsmayprecludesomefarmsreachingthelevelthat’stheoreticallyoptimalfortheplants.
Opportunities:Thoughnottheareaofgreatestpromiseamongthoselistedhere,cheapermethodsofsupplyingandcontrollingcarbondioxideinplantfactoriesarealwayswelcome,asisbetterunderstandingoftheinterrelationshipbetweencropyieldandCO2levels.
6. LIGHTING
Lightingdesignisavitalcomponentforplantfactories,asitprovidestheonlysourceofilluminationforplantgrowthinaclosedsystem.Itisalsoanimportant�inancialdecisionforthegrower,typicallycomprisingaroundhalfofthebuildcostofafarmwhenLEDsareused.SomegrowersrunLEDsasmuchas18hoursperday,representingalargeportionofelectricityspend,oftenintheregionof70-80%.Thoughsodiumlightinghasbeenamainstayofthehorticultureindustry,itisrapidlycedinggroundtoLEDlighting,whichhasthebene�itsoflowerheatandbettergrowercontroloveritsbehavior.LargefallsinLEDpriceshavebeenaccompaniedbyef�iciencyimprovements,andtherearemyriadoptionsforgrowers,fromturnkeysolutionsfromleaderssuchasHeliospectra,Illumitex,LumigrowandPhilipsLighting,throughtocustommanufacturedsolutionsfromcompaniessuchasHungryPlanetTechnologiesoftheUSorNuetechofSingapore.Thesectorhasseenrapidinnovationoverthepastdecade,asbothacademicandcommercialunderstandingofthewaythatplantbiologyandlightinteractbecomemoresophisticated.Forinstance,oneEuropeancompanyhasdeveloped‘lightrecipes’thatareintendedtodelivertheoptimallightspectrumrequiredbyaplantthroughitslifecyclewithoutgrowerinterventionoradjustment.Theinvestmentcommunityhasplayedasubstantiveroleinspurringthisinnovation,plowingUS$800mnofventurecapitalintothelightingsectorbetween2008and2010alone²².
Opportunities:Weareonlyatthebeginningofourunderstandingofhowlightandplantbiologyinteract,andconsequentlytherearenumerousopportunitiesforcommercializationofnewapproachesanddiscoveries.Forexample,Dr.ToyokiKozaihasproposedresearchintotheuseofgreenLEDsandofupwardlighting(asopposedtotheintercroplightingthat’scommonnow)fordenselyspacedcrops⁸.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
20 WWW.INDOOR.AG
CHART TWELVE: LED LIGHTING PRICE FALLS
0 2 4 6 8 10 12 14
China, -11% YOY Global, -14% YOY
Source:LEDinside,for40wEquivalentLEDStreetPrice
Jan-14
Jan-15
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
21WWW.INDOOR.AG
23“FeasibilityStudyofRiceGrowthinPlantFactories”,YamoriW,ZhangG,TakagakiM,MaruoT,RiceResearch:OpenAccess,February201424MinistryofAgriculture,Forestry&FisheryofJapansurveyofFebruary201425“RestinPeace:TheListofDeceasedSolarCompanies”,EricWesoff,GreentechMedia,April06,2013
E WHAT COMES NEXT
WeanticipatethatwewillseebettereconomicsandmoreinternationalexpansionfromAsia’splantfactoriesoverthenextfewyears,drivenbyrapidtechnologydevelopment.
TechnologyDevelopment
Indooragricultureisatanexcitingpointinitsdevelopment,withtechnologyadvanceschangingtheeconomicsoftheindustry,andenablingnewbusinessmodels,atarapidclip.Atpresent,developmentsinLEDlightingandin‘bigdata’usagearebeingcommercialized,bringingbetteryieldsandlowerresourceusagetoplantfactories.Examplesinclude‘lightrecipes’andtheexplorationofadjustedlightspectrumforLEDlighting.Furtheroutisanexpansionofthecropsthatcanbegrowninindoorsystems;researchrangesfromstaplecropssuchasrice,tohighlyspecializedmedicinalcrops.Forexample,a2014researchstudypublishedbyDr.ToruMaruoetalconcludedthatricecouldbegrowninplantfactories²³.
InternationalExpansion
Asisshowninthecasestudyoverpage,Asia’splantfactorycompaniesareleadersinexportingtheirtechnologiestoestablishnewfarmsinothercountries.Thisishardlyasurprisegiventhattheexport-ledeconomicgrowthmodel–wherebycompaniesfocusondevelopingandexportingtechnologies–hasbeenthedominantoneinAsiasinceatleastthe1960swhenthe‘FourTigers’(Singapore,HongKong,TaiwanandSouthKorea)mimickedJapan’searliersuccessinfocusingonexports.Todate,thisexpansionhasbeencontainedtoalimitednumberofAsianmarkets,butweanticipatethatthesecompanieswilleventuallylooktoEurope,AfricaandtheUnitedStatesasexportdestinations.
BetterEconomics
Asometimesreasonablecriticismoftheindooragricultureindustryisthatitisunpro�itable;sub-scaleoperationsandafocusoncommoditycrops,suchasheadlettuce,beingtwoculprits.OnlyaquarterofJapan’splantfactoriesarepro�itable,andhalfbreakeven²⁴.Consequently,amajorindustryfocusgoingforwardislikelytobebetterpro�itability,themostobviouswayofachievingthisbeingbyinvestinginnewertechnologies,andinexpansionofexistingoperations.Lighting,automationandcontrolsystemsarelikelytobethelargestareasoftechnicalupgrades,asgrowersseektocontaintheenergyandlabourcoststhattypicallytakeupmorethanaquarterofoperatingcostseach.Ironically,Asia’s“earlyadopter”statusmeantthatitsinstalledfarmbaseisreliantonlessef�icientsodiumlighting,ratherthantheLEDlightsaroundwhichincreasinglysophisticatedresearchandapproachesarebased.
Sadly,therearealsolikelytobeanumberofbusinessclosuresastheindustrymatures.Wenotethatahighlevelofbusinessfailuresisacharacteristicofarapidlygrowingindustry,andthesamecyclehasbeenseeninanalogousindustriessuchassolar;industryblogGreentechMediafoundthat,of200solarcompaniesbackedbyventurecapitalistsin2008,nearly30%hadgonebankruptorclosedbyApril2013²⁵.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
22 WWW.INDOOR.AG
CASE STUDY: EXPORTING PLANT FACTORY TECHNOLOGY
Sources:Dr.ChanghooChun,NewsReports,SingaporeFarming/NewbeanCapitalanalysis
KOREACos have installed farms in Japan, China,
Mongolia and Qatar
JAPANFujitsu, Mirai & Panasonichave farms in Hong Kong,
Mongolia, Singapore &Vietnam
MONGOLIA
NORTHKOREA
SOUTHKOREA
JAPAN
TAIWAN
PHILIPPINES
INDONESIA
THAILAND
MALAYSIA
MYANMAR
VIETNAMCAMBODIA
LAOS
CHINA
INDIA
NEPALPAKISTAN
KAZAKHSTAN
UZBEKISTAN
TURKMENISTAN
KYRGYZTAN
TAJIKISTAN
BHUTAN
BANGLADESH
BRUNEI
SRILANKA
HONG KONG
SINGAPORE
MACAU
EASTTIMOR
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
23WWW.INDOOR.AG
F THE FUTURE OF ASIA’S INDOOR AGRICULTURE INDUSTRY
AsAsia’sgovernmentsgrapplewiththeenvironmentalandsocietalchangesthattheregion’sfast-pacedgrowthhavebroughtoverthepastthirtyyears,indooragricultureisawayofstretchingscarceresources–water,land,farmlabour–furtherandofensuringfoodsecurity.
Foritsmajorindustrialconglomerates,itholdstheprospectthatexport-ledgrowthcancontinueandthatagriculturecanjointhelistofindustriesinwhichitdominates.
Mostimportantly,forAsia’scitizens,itoffersthepromisethat–asweleavethefamilyfarmsofourancestorsforthecubiclefarmsofthemetropolis–alittleofthecountrysidecanjoinusinoureverydaylifeinthecity.
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
24 WWW.INDOOR.AG
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
25WWW.INDOOR.AG
APPENDIX: JAPAN’S ARTIFICIAL LIGHT PLANT FACTORIESBrand/ Plant Name Operating Body Prefectures
Demonstration plant factory The FIDEA Research Institute Corporation. Akita
Hiraniwa Factory Yokote Precisions Industry Co.,Ltd. Akita
Sanmori Factory Itagaki Kogyo Co., Ltd. Akita
Chef-no-Saien Comfort Hotel Narita Chiba
Green Flavor Goko MIRAI Co., Ltd. Chiba
Urban Farm Inc. Urban Farm Inc. Chiba
Plants Factory Inzai Co., Ltd. Chiba
Jardin Co., Ltd. Chiba
TDU Inzai Innovation Activation Center Chiba
Sankyo Frontier Chiba
Yume Farm Yanadani General Foundation Yanadani Sangyo Kaihatsu Kosha Ehime
Berg Earth Co., Ltd. Ehime
Green Tac Farm Co., Ltd. Ehime
Nippon System Group Co., Ltd. Ehime
Aqua Farm Aqua Farm Co., Ltd. Fukui
Fukui Nanzen-mae Factory Yasai Kobo Co., Ltd. Fukui
High-tech Farm Takefu Factory Agricultural Producers Cooperative Corporation High-tech Farm Fukui
Plant Factory Green land Kidaya shoten CO., Ltd. Fukui
Sanbase Ono Sanbase Ono Co., Ltd. Fukui
NAEYA, Inc. Fukui
OREC CO., LTD. Fukuoka
Kawauchi-Kogen agricultural products vegetable factory KiMiDoRi Corporation Fukushima
TS Farm Shirakawa Kewpie Corporation Fukushima
Aizufujikako CO., LTD Fukushima
JA Tohzai-Shirakawa, Fukushima
Fujitsu Group Consortium Fukushima
Fujita Engineering Fujita Engineering Co., Ltd. Gunma
Main Factory SEIDEN KOGYO Co., Ltd. Gunma
R.S Farm TAISEI Yasai Kobo Co., Ltd. Gunma
Chudenko Chudenko Corporation Hiroshima
Restaurant Furec Co., Ltd. Hiroshima
Chugoku Kogyo Co., Ltd. Hiroshima
Cosmo Farm Iwamizawa Social Welfare Corporation Cupid-Fair Hokkaido
Cosmo Sun Farm Pasio Social Welfare Corporation Cupid-Fair Hokkaido
Okhotsk Factory KINJIRUSHI Co., Ltd. Hokkaido
Plant Factory Tsuchiya Dairy Equipment Mfg. Co. Hokkaido
Social Welfare Corporation HABATAKI Social Welfare Corporation HABATAKI Hokkaido
NPO Corporation SARARA SOBETSU Hokkaido
Hanshin Yasai Plantation Hanshin Electric Railway Co., Ltd. Hyogo
Kobe Nunobiki Herb Gardens Kobe Resort Service Co., Ltd. Hyogo
Meguminosato Meguminosato Hyogo
Mie-ru Ecobata NTT West Japan Asset Planning CO., Ltd. Hyogo
Old Minamidani Elementary School Orix Real Estate Corporation Hyogo
Shunsai Buffet Megumi Seven Planning Co., Ltd. Hyogo
VEGESTORY KANSAI TEKKO Co., Ltd. Hyogo
Bakery & Café Maple House Maple House Co., Ltd. Ishikawa
In Restaurant Bistro Heureux Ishikawa
Main Factory Tsudagoma General Service Corporation Ishikawa
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
26 WWW.INDOOR.AG
Shiawase Shokusai Gottsune Social Welfare Corporation Nanyoen Ishikawa
Kanoya leaf kan Kyokumakoto Kosan Co., Ltd. Kagoshima
Bashamichi LED Saien Keystone Technology Inc. Kanagawa
Gakunan Kenko Yokohama Construction Association Kanagawa
Shin-Yokohama LED Saien Keystone Technology Inc. Kanagawa
Torihama Green Farm T&N Aguri Co., Ltd. Kanagawa
MARUAKI FOODS Co., Ltd. Kanagawa
Colowide MD Co., Ltd. Kanagawa
Tohto Rentall Co., Ltd. Kochi
Aso Kenko Noen House Agricultural Producers Cooperative Corporation Kumamoto
Hikarikko Kobo Create Hikari Inc. Kumamoto
Nishigoshi Factory Nakagawa Sangyo Co., Ltd. Kumamoto
Kameoka plant Spread Co., Ltd. Kyoto
Shinsei Industry Shinsei Industry Co., Ltd. Kyoto
General Production Co., Ltd. Kyoto
Plant factory Kobashidenki Co., Ltd. Mie
Onagawa Factory Sato Kogyo Co, Ltd. Miyagi
Rokuchome-Nouen Apple Farm Co., Ltd. Miyagi
Secom High Plant Secom Industries Co., Ltd. Miyagi
Tagajo Factory Mirai Co., Ltd. Miyagi
[Bellvia] in front of JR Chino Station Suwasai Co., Ltd. Nagano
[Suwaplaza] in front of Kamisuwa station Yukina Co., Ltd. Nagano
Azumino Misato High-tech Farm Oonota Co., Ltd. Nagano
Greenleaf Shinshu Co., Ltd. Timely Co., Ltd. Nagano
Mama Vege Farm ABN Co., Ltd. Nagano
Vegetale NICHIWA KOGYO Co., Ltd. Nagano
Agri-wave Co., Ltd. Nagano
Hasami Care home Social Welfare Corporation Nagasaki
Huis Ten Bosch Huis Ten Bosch Co., Ltd. Nagasaki
Restaurant [Margherita] Shoya Foodsystem Co., Ltd. Nagasaki
Kintetsu Farm Hanayoshino Kintetsu Corporation Nara
Mahoroba Mizukoen Narasanjo Nara Kotsu Bus Lines Co., Ltd. Nara
Ryoki Kogyo Co., Ltd. Niigata
Anzen Yasai Niigata Kojo Co., Ltd. Niigata
Matsudai High-tech Farm Inc. Niigata
Yumeyasai Ozai Farm Yumeyasai Ozai Farm Inc. Oita
[Hinatabokko] Ajisai-Kosha Showa Co., Ltd. Okayama
Kyozan Solar Green Park Ryobi Holdings Okayama
Vege factory Tusnetsugu Kogyo Co., Ltd. Okayama
Yasai-Kura Y&S Distributor Co., Ltd. Okayama
Yume Farm Ukan Co., Ltd. Yume Farm Ukan Co., Ltd. Okayama
Aguri Industry Okinawa-keisoku Co., Ltd. Okinawa
Gushiken vegetable factory Gushiken Co., Ltd. Okinawa
Itoman plant factory Internationally Local & Company Okinawa
Kitanakagusu Degi Farm NPO Subtropical Biomass Research Center Okinawa
Nakagusu Degi Farm NPO Subtropical Biomass Research Center Okinawa
Okinawa Murakami Nouen Okinawa Murakami Nouen Co., Ltd. Okinawa
Okinawa type vegetable factory Kamiya Sangyo Co., Ltd. Okinawa
Plant factory Project Okinawa Cellular Telephone Company Okinawa
Ryuseki Kensetsu Plant factory Ryuseki Kensetsu Co., Ltd. Okinawa
Social Support Esperer ESPERER, Inc. Okinawa
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016
27WWW.INDOOR.AG
Yasai kobo NPO Corp Hatsuho Okinawa
Oogimi Farm Co., Ltd. Okinawa
Galleria plant factory Galleria Co., Ltd. Osaka
Green Chateau plant Factory Japan Greenfarm Co., Ltd. Osaka
Subway Yasai Lavo 2nd shop Subway Japan Inc. Osaka
VEGEE WORK FACTORY Fujiwork CO., Ltd. Osaka
Yasai Lavo Grand front Osaka branch Subway Japan Inc. Osaka
Hanshin Electric Railway Co., Ltd. Osaka
NPO Kamagasaki Shien Kiko Osaka
Miracle Green Co., Ltd. Osaka
Private Private Private
Private Private Private
Acol-ku no Suisaien Nishiken Co., Ltd. Saga
Confirm Ringer Hut Co., Ltd. Saga
Smart Agri Kasasagi Social Welfare Corporation Saga
Yasai-kobo Ansuri Takeo NPO Corp [Ryokufukai] Saga
ChiChibu Midorigaoka Farm Yasai Kobo Co., Ltd. Saitama
High-tech Hanyu Agricultural Producers Cooperative Corporation High-tech Hanyu Saitama
SHIBASAKI Co., Ltd. Saitama
Association of Bio Business Association of Bio Business Shiga
Nagahama Factory Shiga
Plant Factory in Woodypal Yogo LOHAS Yogo CO., Ltd. Shiga
Izumono-Shizuku Eiko Electric Industry Co., Ltd. Shimane
Yonago factory Minnano-Yasai Kojo Co., Ltd. Shimane
Fresh Green Fresh Green, Inc. Shizuoka
Fuji Plant Factory Kobayashi Create Co., Ltd. Shizuoka
Fujieda Office Nisshinbo Holdings Inc Shizuoka
Kakitagawa Vegetable plant factory MITSUISHI CO., Ltd. Shizuoka
NLM ECAL NLM ECAL Co., Ltd. Shizuoka
Oigawa Farm Oigawa plant Murakami Garden Co., Pte. Shizuoka
JA Zennoh Tochigi horticultural Seedling Centre JA Zennoh Tochigi Tochigi
Tonkikki FUTABA FOODS co., ltd. Tochigi
PF Factory Tokushima Nisshinbo Holdings Inc. Tokushima
Naka Vegetable Co., Ltd. Tokushima
Tokushima Seedling Inc. Tokushima
Chef-no-Noen Jack Pot Planning Inc. Tokyo
Green Mate Co., Ltd. Green Mate Co., Ltd. Tokyo
Japan Capacitor Industrial Japan Capacitor Industrial CO. LTD Tokyo
Keio Cultivation Institute Keio Corporation Tokyo
Plantptant Chef-no-Noen Tamachi Bildg Co Tokyo
Sci Tech Farm Tamagawa Academy & University Tokyo
Shimokitazawa Hospital Shimokitazawa Hospital Tokyo
Subway Yasai Lavo The first store Japan Subway Co., Ltd. Tokyo
Tokyo dream Tokyo Dream Inc. Tokyo
Umeshu-Dining Meisei Leave a Nest Co., Ltd. Tokyo
Machinaka plant factory Tottori job creation conference Tottori
Main Factory HRD Co., Ltd. Tottori
Company Owned warehouse Fukumitsu Unyu Co., Ltd. Toyama
Plant Factory Takatsuki Electric Industry Co., Ltd. Toyama
Plant Factory at Namekawa Branch Honda Construction, Inc. Toyama
Smile Leaf Spica Smile Leaf Spica Co., Ltd. Toyama
THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016
28 WWW.INDOOR.AG
Takaoka Factory F&F Co., Ltd. Toyama
Twin�Green�Factory Sankyo Tateyama, Inc. Toyama
Kensaido Co., Ltd. Toyama
Toagosei Co., Ltd. Toyama
Anzen Yasai Kojo, Inc. Anzen Yasai Kojo, Inc. Yamagata
Fresh Factory Yamagata-HOUTOKU Co., Ltd. Yamagata
Saien’s Lavo Endo Shoji Co., Ltd. Yamagata
Natural Process Factory Co., Ltd. Yamagata
Plantation Box Mizuguchi-denso Co., Ltd. Yamaguchi
Fujikasui Kogyo Co., Ltd. Yamaguchi
Ootoya Green Room OOTOYA Holdings Co., Ltd. Yamanashi
Shoun-Service Shoun-Service co., ltd. Yamanashi
UNIFARM UNITECH CO., LTD. Yamanashi
FT Yamanashi Co., Ltd Yamanashi
Ise saien
(LED Noen)
[Da Mamma]
Private Private
Source:JapanGreenhouseHorticultureAssociationdataasat2011(mostrecentavailable),translationbySingaporeFarming/NewbeanCapital
For more information and todownload a .pdf of this white paper,
please visit indoor.ag/whitepaper